Marcos urges speedy budget approval

MANILA, Philippines — President Marcos yesterday called on lawmakers to swiftly approve the proposed P6.793-trillion budget for next year, an outlay that he said reflects a shift toward more investments in programs benefiting the people.

In his budget message, Marcos said the Philippines is on track with its agenda for prosperity and has recovered from the pandemic.

“Hence, I urge the honorable members of Congress to swiftly enact this budget,” he added.

The proposed 2026 national budget is 7.4 percent higher than the P6.326-trillion outlay for this year and equivalent to 22 percent of the Philippines’ gross domestic product (GDP). It is anchored on the theme “Agenda for prosperity: Nurturing future-ready generations to achieve the full potential of the nation.”

Marcos said the administration would pursue the prosperity agenda, saying it has proven to be effective in achieving economic recovery following the pandemic.

In the same message, Marcos called for reforms aimed at promoting transparency in the budget process citing the need to pass the Right to Information bill and the Progressive Budgeting for Better and Modernized Governance bill.

Next year’s budget is based on the assumption that the Philippine economy will grow by 5.5 to 6.5 percent this year.

From 2026 to 2028, the government is projecting a six to seven percent GDP growth rate. Inflation is seen to average within two to three percent this year and is projected to remain stable at two to four percent from 2026 to 2028.

The peso is seen to remain stable in the medium term. Revenue collections are seen to hit P4.983 trillion next year, a 10.2 percent increase from the P4.520-trillion.

The fiscal deficit is projected to hit 5.3 percent of GDP in 2026, lower than the 5.5 percent this year, and is expected to further decrease to 4.3 percent by 2028.

Allocations

In terms of expense class, maintenance and other operating expenses will receive P2.640 trillion or 38.9 percent of the proposed outlay. The item covers the day-to-day operations and spending priorities of the government, including the national tax allotment (P1.191 trillion), the Bangsamoro Autonomous Region in Muslim Mindanao (P104.6 billion) and the local government support fund (P16.1 billion).

Personnel services will get P1.879 trillion or 27.7 percent.

Capital outlays will receive P1.324 trillion while financial expenses, will get P950 billion.

In terms of sector, social services will get the biggest share with P2.314 trillion. Economic services will receive P1.868 trillion.

The Marcos administration also allocated P1.202 trillion to general public services.

The defense sector will receive an allocation of P430.9 billion to strengthen domestic security and modernize its capabilities. The majority of the outlay will go to the defense department (P291.6 billion), particularly the military (P286.9 billion).

The government also allocated P978.7 billion to cover interest payments on government debt and advances to government corporations.

By recipient unit, national government agencies will get the biggest share with P4.305 trillion. Local governments will receive P1.350 trillion while government corporations will get P188.3 billion. The government also allocated P950 billion to creditors for loan repayments, including expenses incurred from domestic and foreign borrowings.

Education and transportation are both set to receive budget increases for 2026. The former is proposed to receive P1.224 trillion for 2026, which is higher than the P1 trillion set in 2025.

The Department of Transportation is poised to receive P198.6 billion in 2026, a P110-billion increase from 2025.

Meanwhile, the Department of Budget and Management announced that the proposed confidential and intelligence funds for 2026 will be reduced to P10.77 billion. – Marco Luis Beech, Jose Rodel Clapano, Neil Jayson Servallos